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Chapter 22, Problem 2APSA
Requirement-1:
To determine
To prepare: The Cash receipts Budget for July, August and September
Requirement-1:
Expert Solution
Answer to Problem 2APSA
Solution: The Cash receipts Budget for July, August and September is as follows:
| July | August | September | |
| Budgeted Cash Receipts | $ 57,800 | $ 67,200 | $ 73,600 |
Explanation of Solution
Explanation: The Cash receipts Budget for July, August and September is prepared as follows:
| Cash Receipts | July | August | September |
| Budgeted Sales (A) | $ 64,000 | $ 80,000 | $ 48,000 |
| Cash Sales (B) = (A*20%) | $ 12,800 | $ 16,000 | $ 9,600 |
| Credit Sales (C) = (A*80%) | $ 51,200 | $ 64,000 | $ 38,400 |
| Collection of Sales: | |||
| Cash Sales (in the same month) | $ 12,800 | $ 16,000 | $ 9,600 |
| Credit Sales (in the next month) | $ 45,000 | $ 51,200 | $ 64,000 |
| Budgeted Cash Receipts | $ 57,800 | $ 67,200 | $ 73,600 |
Conclusion
The Cash receipts Budget for July, August and September is as follows:
| July | August | September | |
| Budgeted Cash Receipts | $ 57,800 | $ 67,200 | $ 73,600 |
Requirement-2:
To determine
To prepare: The
Requirement-2:
Expert Solution
Answer to Problem 2APSA
Solution: The Cash Budget for July, August and September is as follows:
| Cash Budget: | July | August | September |
| Beginning Cash Balance | $ 15,000 | $ 15,000 | $ 25,505 |
| Budgeted Cash Receipts | $ 57,800 | $ 67,200 | $ 73,600 |
| Budgeted Cash payments: | |||
| Direct Material | $ 16,160 | $ 13,440 | $ 13,760 |
| Direct Labor | $ 4,040 | $ 3,360 | $ 3,440 |
| Factory | $ 20,200 | $ 16,800 | $ 17,200 |
| Sales Commission | $ 6,400 | $ 8,000 | $ 4,800 |
| Office Salaries | $ 4,000 | $ 4,000 | $ 4,000 |
| Rent | $ 6,500 | $ 6,500 | $ 6,500 |
| Interest on loan | $ 50 | $ 46 | $ - |
| Total Budgeted Cash Payments | $ 57,350 | $ 52,146 | $ 49,700 |
| Cash Surplus/(Deficit) | $ 15,450 | $ 30,055 | $ 49,405 |
| Beginning Loan balance | $ 5,000 | $ 4,550 | $ - |
| Loan Taken | $ - | ||
| Loan Paid | $ 450 | $ 4,550 | |
| Ending Loan balance | $ 4,550 | $ - | $ - |
| Ending Cash balance | $ 15,000 | $ 25,505 | $ 49,405 |
Explanation of Solution
Explanation: The Cash Budget for July, August and September is prepared as follows:
| Cash Budget: | July | August | September |
| Beginning Cash Balance (A) | $ 15,000 | $ 15,000 | $ 25,505 |
| Budgeted Cash Receipts (B) | $ 57,800 | $ 67,200 | $ 73,600 |
| Budgeted Cash payments: | |||
| Direct Material | $ 16,160 | $ 13,440 | $ 13,760 |
| Direct Labor | $ 4,040 | $ 3,360 | $ 3,440 |
| Factory Overhead | $ 20,200 | $ 16,800 | $ 17,200 |
| Sales Commission (10% of sales) | $ 6,400 | $ 8,000 | $ 4,800 |
| Office Salaries | $ 4,000 | $ 4,000 | $ 4,000 |
| Rent | $ 6,500 | $ 6,500 | $ 6,500 |
| Interest on loan (1% of beginning loan balance) | $ 50 | $ 46 | $ - |
| Total Budgeted Cash Payments (C) | $ 57,350 | $ 52,146 | $ 49,700 |
| Cash Surplus/(Deficit) (D) =A+B-C = | $ 15,450 | $ 30,055 | $ 49,405 |
| Beginning Loan balance | $ 5,000 | $ 4,550 | $ - |
| Loan Taken (E) | $ - | ||
| Loan Paid (F) | $ 450 | $ 4,550 | |
| Ending Loan balance | $ 4,550 | $ - | $ - |
| Ending Cash balance = D+E-F= | $ 15,000 | $ 25,505 | $ 49,405 |
Conclusion
The Cash Budget for July, August and September is prepared using all the budgets information.
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Chapter 22 Solutions
FUND.ACCT.PRIN -ONLINE ONLY >I<
Ch. 22 - Prob. 1DQCh. 22 - Prob. 2DQCh. 22 - Prob. 3DQCh. 22 - Prob. 4DQCh. 22 - Prob. 5DQCh. 22 - Prob. 6DQCh. 22 - Prob. 7DQCh. 22 - Prob. 8DQCh. 22 - Prob. 9DQCh. 22 - Prob. 10DQ
Ch. 22 - Apple regularly uses budgets. What is the...Ch. 22 - Prob. 12DQCh. 22 - Prob. 13DQCh. 22 - Prob. 14DQCh. 22 - Prob. 1QSCh. 22 - Budgeting process C1 Good management includes good...Ch. 22 - Components of a master budget C2 Identify which of...Ch. 22 - Prob. 4QSCh. 22 - Prob. 5QSCh. 22 - Prob. 6QSCh. 22 - Prob. 7QSCh. 22 - Prob. 8QSCh. 22 - Prob. 9QSCh. 22 - Prob. 10QSCh. 22 - Prob. 11QSCh. 22 - Prob. 12QSCh. 22 - Prob. 13QSCh. 22 - Prob. 14QSCh. 22 - Prob. 15QSCh. 22 - Prob. 16QSCh. 22 - Prob. 17QSCh. 22 - Prob. 18QSCh. 22 - Prob. 19QSCh. 22 - Prob. 20QSCh. 22 - Prob. 21QSCh. 22 - Prob. 22QSCh. 22 - Prob. 23QSCh. 22 - Prob. 24QSCh. 22 - Prob. 25QSCh. 22 - Prob. 26QSCh. 22 - Prob. 27QSCh. 22 - Prob. 28QSCh. 22 - Prob. 29QSCh. 22 - Prob. 30QSCh. 22 - Activity-based budgeting Activity-based budgeting...Ch. 22 - Prob. 32QSCh. 22 - Exercise 22-1 Budget consequences C1 Participatory...Ch. 22 - Exercise 22-2 Master budget definitions C2 Match...Ch. 22 - Prob. 3ECh. 22 - Prob. 4ECh. 22 - Prob. 5ECh. 22 - Prob. 6ECh. 22 - Prob. 7ECh. 22 - Prob. 8ECh. 22 - Prob. 9ECh. 22 - Prob. 10ECh. 22 - Prob. 11ECh. 22 - Prob. 12ECh. 22 - Prob. 13ECh. 22 - Prob. 14ECh. 22 - Prob. 15ECh. 22 - Prob. 16ECh. 22 - Prob. 17ECh. 22 - Prob. 18ECh. 22 - Prob. 19ECh. 22 - Prob. 20ECh. 22 - Prob. 21ECh. 22 - Prob. 22ECh. 22 - Prob. 23ECh. 22 - Prob. 24ECh. 22 - Prob. 25ECh. 22 - Prob. 26ECh. 22 - Prob. 27ECh. 22 - Prob. 28ECh. 22 - Prob. 29ECh. 22 - Prob. 30ECh. 22 - Prob. 31ECh. 22 - Prob. 32ECh. 22 - Prob. 33ECh. 22 - Exercise 22-35
Activity-based budgeting
A1
Render...Ch. 22 - Prob. 1APSACh. 22 - Prob. 2APSACh. 22 - Prob. 3APSACh. 22 - Prob. 4APSACh. 22 - Prob. 5APSACh. 22 - Prob. 6APSACh. 22 - Prob. 7APSACh. 22 - Prob. 8APSACh. 22 - Problem 22-1B Manufacturing: Preparing production...Ch. 22 - Prob. 2BPSBCh. 22 - Prob. 3BPSBCh. 22 - Prob. 4BPSBCh. 22 - Prob. 5BPSBCh. 22 - Prob. 6BPSBCh. 22 - Prob. 7BPSBCh. 22 - Prob. 8BPSBCh. 22 - Prob. 22SPCh. 22 - Prob. 1BTNCh. 22 - Prob. 2BTNCh. 22 - Both the budget process and budgets themselves can...Ch. 22 - The sales budget is usually the first and most...Ch. 22 - Prob. 5BTNCh. 22 - Prob. 6BTNCh. 22 - Prob. 7BTNCh. 22 - To help understand the factors impacting a sales...Ch. 22 - Prob. 9BTN
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